Economy takes toll on Fayetteville big businesses
Jessica Powviriya
Issue date: 11/24/08 Section: News
The Arkansas economy is doing much better than the national average, the director for the Center for Business & Economic Research said.
"Arkansas has fared much better than the nation," Katherine Deck, UA director, said. "It has very moderate employment growth, not as great as the last two years, but so far, we have held up better than the rest of the country."
Large business retailers such as Circuit City and Gap are closing stores around the nation. Circuit City announced Monday that 155 underperforming stores nationwide will be closed, including the one in Fayetteville.
"A whole [slew] of retailers are struggling," Deck said. "Circuit City's closure in Fayetteville shows that the company has been having big national problems."
"The company has decided to take certain restructuring actions immediately, including closing 155 domestic segment stores, reducing future store openings and aggressively renegotiating certain leases," according to the Circuit City news release.
"The weakened environment has resulted in a slowdown of consumer spending, further impacting our business as well as the business of our vendors," James A. Marcum, acting president and chief executive officer of Circuit City Stores, Inc., said in a news release.
The Fayetteville Circuit City will be closed as of Dec. 31, 2008. The store is the only Circuit City being closed in Arkansas.
Circuit City is not the only store in Northwest Arkansas having financial troubles in this dismal economy.
The total bankruptcies are above 275,000 for the nation. Arkansas has a total of roughly 3,300 bankruptcies, according to the Arkansas Department of Finance and the U.S. Census Bureau.
Curiel's Western Wear in Springdale; Fletcher Upholstery in Farmington; William R. Ober Construction in Rogers; Always There Lawn Care in Gentry; Hyman Homes, Preferred Homes And Remodel Inc and Reception Services Company in Bella Vista are all stores that declared bankruptcy recently in Northwest Arkansas.
"Arkansas has fared much better than the nation," Katherine Deck, UA director, said. "It has very moderate employment growth, not as great as the last two years, but so far, we have held up better than the rest of the country."
Large business retailers such as Circuit City and Gap are closing stores around the nation. Circuit City announced Monday that 155 underperforming stores nationwide will be closed, including the one in Fayetteville.
"A whole [slew] of retailers are struggling," Deck said. "Circuit City's closure in Fayetteville shows that the company has been having big national problems."
"The company has decided to take certain restructuring actions immediately, including closing 155 domestic segment stores, reducing future store openings and aggressively renegotiating certain leases," according to the Circuit City news release.
"The weakened environment has resulted in a slowdown of consumer spending, further impacting our business as well as the business of our vendors," James A. Marcum, acting president and chief executive officer of Circuit City Stores, Inc., said in a news release.
The Fayetteville Circuit City will be closed as of Dec. 31, 2008. The store is the only Circuit City being closed in Arkansas.
Circuit City is not the only store in Northwest Arkansas having financial troubles in this dismal economy.
The total bankruptcies are above 275,000 for the nation. Arkansas has a total of roughly 3,300 bankruptcies, according to the Arkansas Department of Finance and the U.S. Census Bureau.
Curiel's Western Wear in Springdale; Fletcher Upholstery in Farmington; William R. Ober Construction in Rogers; Always There Lawn Care in Gentry; Hyman Homes, Preferred Homes And Remodel Inc and Reception Services Company in Bella Vista are all stores that declared bankruptcy recently in Northwest Arkansas.
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posted 11/29/08 @ 1:57 AM CST
Part of life is the economy going up and down. Some lose money when the economy is doing great. Some do very well when the economy is doing bad. It is mostly up to you. (Continued…)
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